Vol 17 (2020) - Issue 3

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An Economic Catastrophe

The economic shock

The scale and severity of the COVID-19 pandemic shut down the world. Social distancing measures, supply chain disruptions, and plummeting oil prices have pushed the global economy into recession, with the negative economic impact becoming more tangible in recent weeks. The US economy contracted an annualised 4.8% in the first quarter. With production, employment and consumption declining steeply in the second quarter, Q2 GDP expectations range between –30% and –37% (SAAR). The previous record rate of decline was –10% in Q1 1958.